In addition to the purchase price, Lowe plans to invest more than $20 million for what the company calls "a comprehensive top-to-bottom renovation." The company has been looking for "a solid acquisition opportunity to take advantage of the strong Los Angeles hotel market," according to Bob Lowe, chairman and CEO of Lowe Enterprises.

Bleecker Seaman, managing director of Lowe Enterprises Investors, notes that the Sheraton Universal "attracts a significant number of business and leisure travelers due to its location within Universal City, which is both a business center and recreation destination." With NBC Universal announcing plans to expand its studio operations and build a new business campus, the hotel "is uniquely positioned to benefit from future growth in the market," Seaman says.

The Sheraton Universal was built in 1969 and was expanded in 1978. It sits on an 8.5-acre hilltop site and has visibility for miles around as it rises 20 stories above the 101 Hollywood Freeway. The hotel is within walking distance of a Metro Redline Subway station that connects Universal City to North Hollywood, Hollywood and Downtown Los Angeles. It features 31,000 sf of indoor meeting and banquet facilities and 9,000 sf of outdoor space.

The Sheraton Universal location is also near the hub of Los Angeles' entertainment industry with the headquarters of NBC Universal, the Walt Disney Co., Warner Bros. and a host of other media companies nearby, notes Mike Everett, senior vice president in charge of acquisitions for Lowe Hospitality Investment Partners. Everett says that Lowe will begin refurbishing the hotel later this year, with completion scheduled for early 2008.